ETI Euro Telecom International NV v Republic of Bolivia & Anor

ETI Euro Telecom International NV v Republic of Bolivia & Anor

The English court lacks jurisdiction to grant interim relief in support of ICSID arbitration under s.25 of the Civil Jurisdiction and Judgments Act 1982 and the Interim Relief Order 1997, as the Order does not extend to arbitration proceedings. Even if jurisdiction existed, it would be inexpedient to grant relief due to the ICSID regime, which restricts provisional measures to those recommended by the tribunal or as agreed by the parties. The State Immunity Act 1978 further bars injunctions against Bolivia, as the ICSID arbitration agreement constitutes a contrary provision under s.9. Accordingly, the orders against Bolivia and Entel must be discharged.

Parties
Claimant: E. T. I. Euro Telecom International NV; First Defendant: Republic of Bolivia; Second Defendant: Empresa Nationale de Telecomunicaciones Entel SA
Jurisdiction
England and Wales
Judgment Date
11 July 2008
Procedural Posture
Commercial Court Application / Ruling on Discharge of Interim Injunction
Outcome
Orders discharged; costs awarded to defendants on standard basis; stay granted until 4pm Tuesday for appeal application.
Legal Topics
Interim Relief, ICSID Arbitration, State Immunity, Jurisdiction, Costs
International Arbitration State Immunity Civil Procedure Interim Relief ICSID Arbitration Jurisdiction Costs

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Parties

E. T. I. Euro Telecom International NV

Claimant

Republic of Bolivia

First Defendant

Empresa Nationale de Telecomunicaciones Entel SA

Second Defendant

Procedural Posture

Commercial Court Application / Ruling on Discharge of Interim Injunction

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant interim relief in support of foreign proceedings or ICSID arbitration
  2. 2 Whether the Civil Jurisdiction and Judgments Act 1982 s.25 and related Order in Council empower the court to grant interim relief in relation to arbitration proceedings
  3. 3 Whether the ICSID Convention and Rules preclude interim relief by English courts

Ratio Decidendi

The English court lacks jurisdiction to grant interim relief in support of ICSID arbitration under s.25 of the Civil Jurisdiction and Judgments Act 1982 and the Interim Relief Order 1997, as the Order does not extend to arbitration proceedings. Even if jurisdiction existed, it would be inexpedient to grant relief due to the ICSID regime, which restricts provisional measures to those recommended by the tribunal or as agreed by the parties. The State Immunity Act 1978 further bars injunctions against Bolivia, as the ICSID arbitration agreement constitutes a contrary provision under s.9. Accordingly, the orders against Bolivia and Entel must be discharged.

Court Disposition

Orders discharged; costs awarded to defendants on standard basis; stay granted until 4pm Tuesday for appeal application.

Orders

  • The interim injunctions made on 9 May and 16 May 2008 against Bolivia and Entel are discharged.
  • Defendants are awarded costs on the standard basis.